Incentives and rewards are an integral part of motivation in a corporation. Recognizing and understanding different motivational patterns: across cultures leads to the design of appropriate reward systems. In the United States, there are common patterns of rewards, varying among levels of the company and types of occupations and based on experience and research with Americans. Rewards usually fall into five categories: financial, social status, job content, career, and professional. The relative emphasis on one or more of these five categories varies from country to country. In Japan, for example, reward systems are based primarily on seniority, and much emphasis is put on the bonus system. In addition, distinction is made there between the regular workforce and the temporary workforce, which usually comprises women expected to leave when they start a family. As is usually the case, the regular workforce receives considerably more rewards than the temporary workforce, both in pay and benefits and in the allocation of interesting jobs.For the regular workforce, the emphasis is on the long- term effectiveness of the employee in terms of behavior, personality, and group output. Rewarding the individual is frowned on in Japan because it encourages competition rather than the desired group cooperation. Therefore, specific cash incentives are usually limited. In Taiwan, recognition and affection are important; company departments compete for praise from top management at their annual celebration.
In contrast, the entire reward system in China is very different from that of most countries. The low wage rates are compensated for by free housing, schools, and medical care. While egalitarianism still seems to prevail, the recent free-enterprise reform movements have encouraged duo lao, duo de (more work, more pay). One important incentive is training, which gives workers more power One approach used in the past - and one that seems quite negative to Americans - is best illustrated by the example of a plaque award labeled “Ms. Wong - Employee of the Month.” While Westerners would assume that Ms. Wong had excelled as an employee, actually this award given in a Chinese retail store was for the worst employee; the plaque was designed to shame and embarrass her. Younger Chinese in areas changing to a more market-based economy have seen a shift toward equity-based rewards, no doubt resulting from a gradual shift in work values.
There is no doubt that culture plays a significant role in determining the appropriate incentive and reward systems around the world. Employees in collectivist cultures such as Japan, Korea, and Taiwan would not respond well to the typical American merit-based reward system to motivate employees because that would go against the traditional value system and disrupt the harmony and corporate culture.
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